Bitcoin’s Prolonged Profit-Taking Streak
Analyst James Van Straten has highlighted the ongoing profit-taking trend in the Bitcoin market. He references the “Net Realized Profit/Loss” metric from Glassnode, which tracks the net profit or loss realized by BTC users on the blockchain.
This metric analyzes the transaction history of each coin to determine the price at which it was moved prior to its latest transfer. If the coin changed hands through buying and selling, this movement would result in a profit or loss equal to the price difference.
The Net Realized Profit/Loss has been positive, indicating that investors are currently realizing profits. This trend has persisted for about 90 days, making it one of the longest profit-taking streaks in the past five years.
Bitcoin Price and Potential End of Streak
Bitcoin is currently trading around $41,000, experiencing a 3% decrease in the past week. While investors have been continuously profiting due to the rising Bitcoin price, recent drawdowns may lead to an exhaustion of profit-sellers and potentially end the streak.
Hot Take: Bitcoin Investors Continue to Profit
The Net Realized Profit/Loss metric reveals that Bitcoin investors have been consistently profiting for an extended period. Despite recent price fluctuations, this streak highlights the profitability of Bitcoin as an investment. However, it remains to be seen if market conditions will continue to favor profit realization or if a shift is imminent.
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